Troubled department store chain Debenhams is set to slash 320 store management jobs as part of a major cost-cutting drive resulting from flagging sales.

The retailer, which has a flagship store in Plymouth, said efforts to drive down the “complexity” of management positions, coupled with changes to working practices, would bring “significant cost savings”.

The move could hit 25 per cent of store management roles across the organisation, including Plymouth, with a new structure expected to be rolled out by the end of March 2018.

Debenhams saw its share price slump as much as 24 per cent in January after warning over profits and slashing prices to bolster lacklustre festive sales.

Plymouth city centre's Debenhams store

It also announced plans to ramp up cost savings, with about another £10million earmarked for this financial year and £20million extra annually under a reorganisation led by chief executive Sergio Bucher.

The chain is among several retailers hit by a wave of challenges including online shopping, out-of-town retail parks, flat wage growth, rising inflation, and hiked taxes.

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“The effect is that potentially 320 positions are at risk of redundancy – approximately 25 per cent of store management roles.

“We are currently consulting with individuals affected and will seek redeployment opportunities where possible.”

Debenhams revealed in January that UK like-for-like sales had tumbled 2.6 per cent in the 17 weeks to December 30, 2018, with overall group sales down 1.8 per cent.

It warned at the time that “should the current competitive and volatile environment continue” into the second half, full-year profit before tax is likely to be in the range of £55million to £65million.

PANIC ON THE HIGH STREET - struggling Plymouth retailers

Debenhams is not the only retailer in turmoil. Here are some others that are facing a make-or-break 2018:

New Look

The chain, which operates in Drake Circus Shopping Centre, has had a bruising year following an ill-judged strategy to appeal to younger shoppers, which alienated core customers and led to sales falling.

The retailer is now expected to report a loss of between £5million and £10million for the past nine months, a painful fall from the £111.5million profit it recorded in early 2017.

Toys R Us

Toys R Us staved off the threat of administration just before Christmas 2017 after creditors “overwhelmingly” agreed to a restructuring plan that will secure about 2,500 jobs.

But Plymouth’s Warehouse store is among several that will close, and shelves are already being emptied of goods.

Marks & Spencer

Retail bellwether Marks & Spencer, which has a huge store in Plymouth city centre, blamed unusually warm weather in October for a 2.8 per cent fall in like-for-like clothing and home sales over the 13 weeks to December 30.

It has now announced it will close 14 stores and cut hundreds of jobs. Plymouth’s outlets are safe, for now, however

Mothercare

The baby and maternity products chain issued a profits warning after like-for-like sales fell by 7.2 per cent during the 12 weeks to December 30, 2017.

Mothercare has now decided to move out of Drake Circus mall, but will relocate to a unit more than double the size at the under-construction Plymouth Gateway Retail Park at Marsh Mills.

The retailer said pre-tax profits in the year to the end of March 2018 are now likely to be between £1million and £5million – below expectations of £10million.

Moss Bros

The men’s outfitter, which has a branch in New George Street, warned profits would be slightly lower than expected, blaming fewer shoppers in its stores.

It said profits for the year to the end of January would be between £6.5million and £6.8million, slightly below analysts’ expectations.

House of Fraser

There are new fears for Plymouth's House of Fraser store after one of its insurers pulled the plug on cover for suppliers.

In the latest blow for the retailer, which has a flagship store in Plymouth city centre, House of Fraser now faces a cash squeeze after a leading credit insurer said it would no longer protect some of the firms which fill the shelves with goods.